Elements of an IT-related business strategy

5 levels

Efficient use of IT

IT is used to improve the efficiency of one localized area within a business. The focus is mainly on ensuring that the IT service is delivered in a cost effective and reliable way. Managers may choice to deploy systems in their specific area such as a financial system or a human resources system. The systems can use different hardware or database than the rest of the organization. Deploy to respond to operational challenges within their specific area and do not consider the benefit of to the entire organization. The system underutilizes the potential of IT. Competitors can introduce standalone systems

Effective integration of IT

An IT department seeks to integrate systems throughout the organization so that the entire company benefits. Generally systems are connected across the entire organization. Organizational roles and responsibilities should also be adjusted employees are encourages to work cross functionally. Organization integrates systems and applications that benefit the organizations as a whole. Promote interdependence aamong the functional areas and processes of the company. Organizations can become efecient due to a reduction in operating cost and better decision making.

Alteration of business methodology

Organizations alter business methodologies and workflow. Re-think how they work to cut cost and improved customer service. Shared databases and portable computers make it possible for flexibility. Buinesses can benefit from this flexibility. Aware of how copetittors are changing. Results in fundamental changes and responsibilities should result in better use of technology.